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Moody’s Cuts China Credit Outlook to Negative on Rising Debt
China stepped up usage of fiscal stimulus to aid growth
Such move put downside risks to nation’s economy: Moody’s
By Bloomberg News
December 5, 2023 at 7:34 AM GMT
Updated on
December 5, 2023 at 9:27 AM GMT
Moody’s Investors Service cut its outlook for Chinese sovereign bonds to negative, underscoring deepening global concerns about the level of debt in the world’s second-largest economy.
Moody’s lowered its outlook to negative from stable while retaining a long-term rating of A1 on the nation’s sovereign bonds, according to a statement. China’s usage of fiscal stimulus to support local governments and its spiraling property downturn is posing risks to the nation’s economy, the grader said.
China and EU should push relations to ‘a new level with new prospects’, Wang Yi tells European envoys in Beijing
In lead-up to China-EU summit on Thursday, China’s foreign minister says if the two sides choose dialogue and cooperation, there will be no bloc confrontation
European Council says gathering will focus on state of EU-China relations and global hotspot issues
Chinese authorities announced a rare mid-year revision, which included the issuance of 1 trillion yuan in ($137 billion) in government debt — one of the biggest changes to the national budget in years.
Even the extra 1 trillion [central government debt] issuance, if you compare that amount to land sales revenue that’s lost because of the housing correction, it’s not even enough,” Wei Yao told CNBC.
Private surveys for services and manufacturing have diverged from China’s official PMI. The Caixin China services purchasing managers’ index came in at 51.5 in November, its strongest since August.
China and EU should push relations to ‘a new level with new prospects’, Wang Yi tells European envoys in Beijing
In lead-up to China-EU summit on Thursday, China’s foreign minister says if the two sides choose dialogue and cooperation, there will be no bloc confrontation
European Council says gathering will focus on state of EU-China relations and global hotspot issues